Mike Folkerth - King of Simple

Western Colorado’s own Humorist / Economist

The Long Arm of NAFTA and The WTO:

Good Morning Middle America, your King of Simple News has another dose of reality this morning.

In my little neck of the woods here in rural Western Colorado, we are fortunate to be removed from the painful issues of our businesses picking up and moving to China; we wish.

In the serene village of Paonia, lying in an idyllic mountain valley along the banks of the North Fork of the Gunnison River, and surrounded by peach, apple and cherry orchards, Chaco Sandals rose to fame. The company was an American success story, the one that really did start in a garage with a good idea and eventually gained world distribution for an exceptional product.

As business grew, new facilities were constructed and good quality jobs were created for the local citizens. The new found commerce became so brisk, that a former super market was purchased in the nearby town of Delta to serve as a distribution hub which employed even more of the local citizens. Life was good for employer and employees.

This is the way that America should be. The opportunity to live and work in a beautiful unspoiled environment, away from the crime, pollution, corruption and congestion of the city, after all, isn’t this what America is all about; the freedom to start a business and prosper?

And then came NAFTA and the WTO.

At first, the owners and managers of Chaco confirmed that they were here to stay; after all, the company wasn’t built in Paonia by accident.

But then, once an American company’s American made competition goes to China…how do you compete? “We can,” was once more the attitude.

The end of next month, July, 2008, will mark the closure of Chaco Sandals production; in the U.S.

When I wrote “The Biggest Lie Ever Believed,” I pointed out that a U.S. company cannot under any circumstances compete with labor that is being paid at 50 times less. You didn’t read that wrong, fifty times less.

There is a great difference between free trade and fair trade. What William Jefferson Clinton signed on both NAFTA and the WTO were free trade agreements, there was never anything fair about it. Ask the more than 8.5 million people who are now unemployed in the U.S. whether it was fair.

Our current government is totally unfit to govern. They are complete and total failures and have led us to a place that we may never recover from. When I say our “current government,” I’m not talking about George Bush. While George Bush has been a total failure at his leadership, it isn’t his signature on the bottom of NAFTA and the WTO.

Leadership has known that our system of exponential growth would fail from the time this growth oriented society began. But those who were vocal and pointed out the obvious cracks in the foundation were marginalized as “Chicken Little’s.”

In 1971, the U.S. was forced to go off the gold standard permanently. From that time forward, our system of growth beyond natural limits has been supported by “The Biggest Lie Ever Believed.”

 
Comments
1.
On June 30th, 2008 at 8:02 am, Gila said:

I heard on a NPR show this morning, someone saying that due to the high cost of gasoline, they cannot wait until November for help. I hope they were referencing the fact that either one of the front runners in the presidential race would only make things worse for us (and they will). ANYONE who believes that either one of these candidates will do anything but harm has completely lost track of reality.

You know, I owned a distempered horse once, that was not susceptable to pain. The insight the poeple of our nation have today regarding our economy and our leaders have a lot in common with that old horse.

What do you want to bet that one of the two front running presidential candidates will be in office come January 2009? I’ll donate as many hammers possible so that everyone can smash their fingers once again, shortly after the upcoming election. It should, once again, be a great show.

2.
On June 30th, 2008 at 8:19 am, Billyb said:

This abiotic oil thing (abiotic oil does exist, just not in the quantities people believe) reminds me of my childhood days of believing in Santa Claus and the Easter Bunny. There is a huge difference though. Believing in Santa and the rabbit were fairly harmless. Not so with the abiotic (and many other) beliefs of todays citizens. There is another minor difference too. Most adults would be ashamed to publically admit to believing in Santa and the rabbit. -bb

3.
On June 30th, 2008 at 8:52 am, Mike Folkerth said:

Good Morning Billyb and Gila,

These Americans who are losing their jobs in areas of already substantial unemployment, feel nearly hopeless.

That horrible sick feeling of hopelessness and the reality of foreclosure and repossession are the fate of hundreds of thousands of Americans who are victims of our flawed system and failed government.

After all, it was government who made it possible for 30 cent labor to compete heads up with Americans. It is government who encourages population growth through nearly unchecked immigration.

How anyone, with any conscience can justify the effects of NAFTA and the WTO on America’s Middle class, is beyond my comprehension.

4.
On June 30th, 2008 at 10:09 am, WmA said:

I went to Wikipedia, and still don’t understand the “This abiotic oil thing” ?? Is it supposed to somehow replenish itself from the earth mantel??
I thot the formation of oil was well understood??
Tnx.. WmA..

5.
On June 30th, 2008 at 10:19 am, Mike Folkerth said:

Mornin’ Willy,

Yeah, you’re correct on both accounts. I had a guy tell me last week that the entire east Texas oilfield had completely refilled from abiotic oil but was being kept a secret.

Who ever is keeping that secret better reveal it before we run completely out.

Oil, while on everyones mind, is not the only depletion issue that we are facing, but multi-tasking is not high on most folks list of things to do today. There is sense that if we find a substitute for oil that everything will be fine and dandy and all the other problems will go away. Not.

6.
On June 30th, 2008 at 11:22 am, Billyb said:

I have been working in the oil patch as an engineer for many years now. Some people theorize that abiotic oil (formed from magma) is what we are using today in our automibiles. This general belief claims that oil is formed from magma instead of an organic origin. These ideas however are basically groundless. All unrefined oil carries microscopic evidence of the organisms from which it was formed. These organisms can be traced through the fossil record to specific time periods when quantities of oil were formed. Magma is lacking in carbon compounds, and hydrocarbons are lacking in silicates. If hydrocarbons were generated from magma, then you would expect to see some closer kinship in their chemistry. And you cannot and will not find this to be true.

It is a simple geological fact that the oil we are using up at an alarming rate today will not be replaced within our lifetime; or within many lifetimes for that matter. That is why hydrocarbons are called non-renewable resources. Capped wells may appear to refill after a few years, but they are not regenerating. It is simply an effect of oil slowly migrating through pore spaces from areas of high pressure to the low-pressure area of the drill hole. If this oil is drawn out, it will take even longer for the hole to refill again. Oil is a non-renewable resource generated and deposited under special biological and geological conditions.

There are other interesting facts assoiated with oil shale, but the bottm line is that under the very best of conditions a 1% recovery rate can be expected.

Still, as you suggest Mike, oil (or lack of) is not and should not be our main focus today. Our government and it’s flawed policies, especially the economic policy of exponential growth need to be the main focus for our attention. And electing individuals such as the two front running presidential candidates, will only place us more firmly in the path of the oncoming train. The oil problems we face today will intensify rapidly unless we repair the infrastructure within our government that are at the root of the majority of our problems. The presidential election does not have to turn out like this, but I believe you know as well as I do, that it will. -bb

7.
On June 30th, 2008 at 2:50 pm, Mike Folkerth said:

Billyb,

Thanks for the informative comment regarding oil. And also for emphasizing that oil is not the subject that should be garnering our total attention.

Oil has become such a focus that we forget what David Walker, our former Chief Comptroller General said about Medicare and Social Security. These two programs alone cannot under any growth scheme, be funded in their current state.

I would think a little item like the U.S. being hopelessly broke would deserve some ink, but nope, let’s talk oil.

What about water? Perhaps they will come up with a filter that allows us to drink raw sewage, but pardon me if I don’t break out the champagne.

8.
On June 30th, 2008 at 6:26 pm, Gila said:

If someone were stealing from you and your family and friends on a regular basis, would you vote to put this person in a position to intensify this thievery? Senators Obama and McCain are just such people ( and most of their peers and most of congress are related to these individuals via their talants). And through their election campaigns Obama and McCain are promising to intensify the thefts many times over in the coming years. Yet the majority of Americans who plan to attend the process at the polls in November will vote for one of these two individuals. It just does not make a lot of sense does it? What logic does one use to justify this kind of action?

Out of all the presidential candidates who ran the upcoming election, only Dr. Paul did not lie to the American population. He is the only one who not only does not steal from, us but he gives back many times over. How many other congresspersons give a portion of their salary back each year? How many other congresspersons refuse to acept the free ride retirement program offered to them? How many politicians in general understand, at least some of the major problems and have pushed for solid solutions? Most only state what they and the pols say we want to hear. Not the truth; not even close to the truth. And that is why Dr. Paul is not in the running anymore and that is why we own the mess we have today.

I plan to vote, but not one for one of the problems (forget party affiliation) at the top of the heap. I also plan to listen to Dr. Paul between now and election time and see if what insight he may have for a positive competent candidate, that just may be able to turn us the right direction. Won’t happen if we keep insisting on being robbed by the status quo however.

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